If I was tasked with setting up a small portfolio targeting a high growth strategy, here are 5 ASX listed shares that I would consider:

Afterpay Touch Group Ltd (ASX: APT)

Afterpay Touch Group is a technology-driven payments company that offers a 'buy now, receive now, pay later' service that does not require end-customers to enter a traditional loan or pay any upfront fees or interest to Afterpay.

The Afterpay share price has started the year strongly, climbing 50% since the start of January after getting battered in late 2018.

Afterpay softened slightly after releasing half-yearly results, as the company tries to implement its US expansion strategy.  If it successfully penetrates this market, the current Afterpay share price is well below what it could eventually be.

Pro Medicus Limited (ASX: PME)

Pro-Medicus is a leading health imaging company that provides a full range of radiology IT software and services to hospitals, imaging centres and health care groups worldwide.

The Pro-Medicus share price is up 16% in 2019, partly due to its pleasing results announcement.

This little-known biotech company is slowly growing its Visage product range around the world and has landed some key contracts to help this expansion.  It is already turning profits and paying dividends.

The PME share price should continue to increase if its technology becomes widely accepted as the best product of its kind.

Nearmap Ltd (ASX: NEA)

Nearmap Limited is an ASX listed aerial imagery technology and location data company that provides frequently-updated, high-resolution aerial imagery of Australia, United States of America and New Zealand.

The Nearmap share price has started the year in phenomenal fashion, up 83% since the start of January 2019.

Similar to Afterpay Touch Group, Nearmap is embarking on a journey of US expansion and has excited investors by releasing impressive increases in its Annualised contract value measure in this region.  The US market represents a huge growth opportunity.

Nearmap is forecasted to start turning profits over the next few years, so it could be an excellent time to jump on board.

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources is a global-scale Australian gold producer with Tier-1 world-class projects located in Australia and North America.

The Northern Star Resources share price has had a bumpy start to the year, falling early before rallying on results earlier this month.

Northern Star has a strong balance sheet which gives the ability to pick up acquisitions at the bottom of the pricing cycle.  This ability to expand allows the company to accelerate growth through smart purchases.

Whilst Mining companies are capital intensive, Northern Star has shown its pedigree over the past five years and could be a good bet for the future.

Xero Limited (ASX: XRO)

Xero is a New Zealand based software company that offers a cloud-based accounting software platform for small and medium-sized businesses.

The Xero share price has increased by 17% since the start of 2019 and continues to grow its subscription base. Whilst it is yet to turn a profit, the increasing popularity in its platform will allow it to grow margins in the future.

The accounting software company has a good brand reputation but may face competition down the track.

Foolish Takeaway

It is important to remember to balance out your portfolio depending on your needs and the stage of life you're at.  While the names above represent companies with explosive growth potential, it is also important to remember that each has its own risks associated.

If you're setting up a larger investment portfolio, I'd ensure I have a solid base of blue-chip shares before adding too many higher risk options.  This will help control risk, just in case something goes pear-shaped.

The post 5 ASX shares I would buy to set up a high growth portfolio appeared first on The Motley Fool Australia.

More reading

• 3 under-the-radar ASX AI shares that could be the next WiseTech
• 2 ASX ETFs that could be a perfect for a tech rally
• 5 things to watch on the ASX 200 on Monday
• How to build a $500,000 ASX share portfolio step by step
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates

Investing in Financials can be a quick way in diversifying quickly.  These companies receive money from their customers and then allocate them to different asset classes to generate returns.  Whilst they operate similarly, each Investment Manager engages different strategies for where they invest.

Here are 3 ASX Investment Management companies that I'd consider investing in.

Platinum Asset Management Ltd (ASX: PTM)

Platinum is an Australia-based investment manager that focuses only on international shares, providing portfolios of listed companies from around the world on different stock exchanges.

The Platinum share price has started the year well, increasing approximately 9% since January 2019.  This appreciation can largely be put down to bullish movements in share prices around the world.

Whilst Platinum have good diversification across a broad spectrum of geographies, there is a large proportion of Asian exposure compared to some of its Investment Manager peers.

Due to the heavy Asian exposure, tensions between the US and China represent a real risk to Platinum shareholders.  The rhetoric may partly explain why the Platinum share price is well below its 52-week high of $6.81 per share.

Magellan Financial Group Ltd (ASX: MFG)

Magellan Financial Group is a funds management business based in Sydney that offers international investment funds to high net worth and retail investors in Australia, New Zealand and institutional investors globally.

The Magellan share price has started the year in superb fashion, increasing approximately 44% since January 2019.  This was due to an impressive half-yearly report when funds under management increased by 35% to $72 billion.

Magellan runs a different strategy to Platinum Asset Management and has heavy exposure to the US share market.  This strategy reflects the longer-term share price movements, as it has benefitted from good returns from the Nasdaq and S&P500 companies.

Challenger Ltd (ASX: CGF)

Challenger is an investment management company that provides a range of product solutions aimed at helping consumers during retirement. These solutions are based around our market-leading annuities that provide regular payments for the chosen investment term, regardless of how markets perform.

The Challenger share price has dropped to begin the year, largely due to releasing softer than expected results as funds under management dropped.

Challenger's strategy sees a lot of the company's revenues derived from retirement products, specifically annuities.  The company is set to benefit from Australia's aging population, as it is expected that retirees will naturally look for the types of products they offer.

Foolish Takeaway

An Investment Managers success is largely underpinned by the corresponding markets that the portfolios are linked to.  It can be a quick and easy way to diversify, as the share picking behind the scenes is done by experts.

I would consider having one of these companies in my portfolio but would consider buying during market shocks, as these shares can be hit particularly hard.

The post 3 ASX-listed Investment Managers I'd consider for my portfolio appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares rip with financials leading a remarkable recovery last week
• Why is the Magellan share price rising today?
• Why Magellan, Telix and Fortescue shares are grabbing headlines on Friday
• Magellan Financial Group shares in focus following Barrenjoey merger approval
• Buy, hold, sell: CSL, Magellan, and Woodside shares

The Webjet Limited (ASX: WEB) share price has taken off at the start of 2019, with the company announcing pleasing half-yearly results on February 21.

Webjet is Australia and New Zealand's leading online travel agency.  It enables customers to compare, combine and book the best domestic and international travel flight deals, hotel accommodation, holiday package deals, travel insurance and car hire worldwide.

If you're considering investing in this company, see below why I still think Webjet shares could be a buy.

Before assessing the Webjet investment case, it is important to take a broader look at consumer spending in this space.  More sales are going to the internet every year. Technologically adept millennials are getting older and are choosing less and less to enter bricks and mortar travel agents as they feel more comfortable buying online.

WebBeds growth story

The Webjet share price has increased as much as 50% since the start of January, after posting some excellent growth numbers that have caught the eye of investors.  The company delivered a record first-half performance with a 42% increase in EBITDA to $58.0 million. Revenue grew 33% to $175.3 million and net profit after tax was up 61% to $38.3 million.

The emergence of the WebBeds story has been a key highlight from this reporting season, as this business unit became the largest at Webjet (if measured by EBITDA).  Its EBITDA more than doubled year-on-year with strong growth delivered through the European and Middle Eastern markets.  It also derives solid EBITDA from the US arm of the business.

The result from WebBeds and the overall company points to earning streams coming from all different regions.  This reduces the risk faced by any single economy, as one region may be thriving while others struggle.

The travel agent market is highly fragmented and this represents both an opportunity and risk for Webjet.  The opportunity is there due to the company only having penetrated a very small amount of the overall market, but the risk is that it has an easy product to replicate and other might try and come in.

Foolish Takeaway

There is no doubt that the world is transitioning away from bricks and mortar travel agencies and converting to online solutions.  Webjet is a company with a strong brand presence that is continuing to grow on the back of this trend.

Whilst I think the Webjet share price might be a bit expensive following these results, I think it could be a fantastic buy and hold opportunity.

The post Why I think the Webjet share price is a buy appeared first on The Motley Fool Australia.

More reading

• Is it time to buy low on these ASX travel stocks?
• 5 ASX shares I'd buy with $5,000 today

The Nanosonics Limited (ASX: NAN) share price has surged almost 50% so far in 2019, with the latest jump due to pleasing first-half FY19 results released on.  The biotech company hit a 52-week high of $4.31 on Tuesday, before closing 3.19% higher for the session at $4.21.

Nanosonics is an ASX200 listed healthcare company that specialises in the development and commercialisation of infection control solutions.  It has a global footprint and is approved for sale across most major markets. The company has been growing steadily over the past five years but is it still a buy?

Earnings review

Its global installed base of Trophon devices grew to 19.3 thousand by FY2019 H1 with continued growth expected at a similar rate.  The total opportunity for installed bases is currently estimated to be 120k, meaning only 16% of the total market has been penetrated.

Total first-half revenue in FY19 H1 was $40.7 million, up 36% on the prior corresponding period.  Operating profit before tax of $11 million represented 195% on the prior corresponding period and an impressive 493% on FY2018 H2.

A key highlight from the half was the re-negotiated distribution agreement with General Electric Company (NYSE: GE) being expanded to include: Denmark, Finland, Spain, and Portugal.

Nanosonics is set to receive a new earnings stream in the next few years, as there is a significant replacement/upgrade opportunity for customers to the Trophon2 device as the first-generation product ages beyond five years.  This opportunity is set to start in the current financial year but the major demand through this stream will come in 2-3 years.

The pleasing result is backed up by a solid outlook, as installed bases are to grow at a steady rate.  Nanosonics expects strong adoption of its product in the United Kingdom and is expecting new health guidelines in Germany and France to further push demand.

Nanosonics continues to sit at an astronomical P/E ratio, despite posting impressive earnings figures as investors price in further growth.  Another key risk continues to be that Nanosonics only focuses on one area with one major product, so the introduction of an equivalent competing product could disrupt its growth trajectory.

Foolish Takeaway

Nanosonics is a small cap share that could be well worth adding to your portfolio and holding for the long haul.  It provides a unique product and continues to receive tailwinds via changes to regulation in disinfection from different parts of the world.

The Nanosonics share price can be susceptible to shocks due to its high P/E so I would consider waiting for a dip before jumping in.

The post The Nanosonics share price is up 50% in 2019: Is it still a buy? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

The saying "Don't throw all your eggs in one basket" is commonly thrown around when considering investments.  If I had $20,000 I wanted to spend to construct a portfolio, I'd consider the following five ASX shares.

CSL Limited (ASX: CSL)

CSL Limited is a global biotechnology manufacturer that researches, develops, and markets products to treat and prevent rare and serious diseases.

It's currently Australia's fourth biggest company and has a history of churning out fantastic growth figures.  Whilst the CSL share price looks expensive at ~$186, underpinned by a P/E of 32, this is because the company has a proven record of developing and marketing new products across many global regions.

Westpac Banking Corp (ASX: WBC)

Westpac is Australia's first bank and oldest company, one of four major banking organisations in Australia and one of the largest banks in New Zealand.

It's currently Australia's third biggest company and derives a major proportion of its earnings from retail banking.  The Westpac share price currently trades ~14% below its 52-week high of $31.40 and has a fantastic dividend yield of 7.1%.

Altium Limited (ASX: ALU)

Altium Limited is a public software company that provides PC-based electronics design software for engineers who design printed circuit boards.

The Altium share price has recently surged to a 52-week high and currently sits at $34.60.  It looks expensive at a P/E of ~71 but this seems justified after producing fantastic results, once again.  Its earning per share is currently 39.6c and this is expected to continue growing at a rapid rate.

Macquarie Group Ltd (ASX: MQG)

Macquarie is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities.

The Macquarie Group share price is currently at ~$128 at trades at a P/E of ~14.  It produces an impressive $8.31 in earning per share and provides a dividend yield of 4.3%.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

Clivunel Pharmaceuticals Limited is a global biopharmaceutical company committed to developing drugs for the treatment of a range of severe skin disorders.

The Clinuvel share price is trading at ~$23.87 on a P/E of 89.  The company is a relatively speculative bet in nature due to the heavy regulation involved in getting products approved to sell commercially.  It's already turning a profit though so could represent a good risk play.

 Foolish Takeaway

This five-share portfolio would be driven by a range of different earning streams, including Healthcare products, retail banking, financials and technology.  Along with this, you would also have a small speculative play in CUV as a minor percentage of the portfolio.

This portfolio would also have earnings coming from different geographical regions and not only Australia.  This is important to help mitigate risks that may be caused by one country having an economic downturn.

If I was starting up a portfolio, I'd start with a few blue-chip shares. like these three, before taking on too much risk and ensure that they cover the bulk of the portfolio in % terms.  It can give some peace of mind knowing that you're invested in some of Australia's best companies.

So instead of throwing your eggs in one basket, be sure to spread them around.

The post 5 ASX shares I would buy with $20,000 to set up a diversified portfolio appeared first on The Motley Fool Australia.

More reading

• This ASX shares and ETF mix could be the key to early retirement
• Top brokers name 3 ASX shares to buy next week
• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• How to build a Warren Buffett-inspired ASX share portfolio
• 6 ASX 200 shares downgraded by the experts this week

As the economy advances technologically, there are new themes that begin to emerge.  Some of these themes include big data, artificial intelligence and data warehousing.  Below are two ASX companies that have massive growth potential on the back of these themes.

Appen Limited (ASX: APX)

Appen is a global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence.

The "Artificial intelligence" boom that is attempting to make workplaces simpler is really beginning to take off, with many ASX200 companies trying to harness these solutions.

The Appen share price has increased significantly since the start of January 2019, closing this week at $18.81.  This represents a 53% increase and is likely on the back investors expecting impressive results.

Appen is currently trading at a P/E of 50, underpinned by earnings per share of 19.9c.  It still has a relatively small market capitalisation of $1.9 billion. but is expected to grow significantly over the next few years.

NEXTDC Limited (ASX: NXT)

NEXTDC is a technology company enabling business transformation through innovative data centre outsourcing solutions, connectivity services and infrastructure management software.

The NEXTDC share price has benefitted from the increasing need for data warehousing.  As data continues to grow, the need to store that data also increases and therefore the company receives economic tailwinds to its earnings.

NEXTDC is Australia's largest hyperscale data centre solutions provider and currently has 8 data centres across the country, with 3 more in development.  The company operates on a "Build it and they will come" type model, where there are large costs associated in building the centres before it receives a return on investment through contracts with customers.

The issue NEXTDC faces is maintaining utilisation of the data centres, as they're an expensive fixed cost and need to be generating revenue.  Whilst the tailwinds are currently there for more data flowing in if the market gets saturated with centres than they may struggle to charge any sort of premium for service.

NEXTDC currently has a P/E of 271 and is generating earnings per share of 2.2c.  It has a market capitalisation of ~$2.4 billion.

Foolish Takeaway

Both of these companies are certainly backed by economic trends, but it seems that the high P/E ratios leave both vulnerable to share price shocks.  I think they're fantastic long-term options but would recommend you wait for dips in price to pick them up.

The post 2 ASX tech companies with massive growth potential appeared first on The Motley Fool Australia.

More reading

• 3 under-the-radar ASX AI shares that could be the next WiseTech
• NextDC rally comes to a halt. Here's what just dropped
• NextDC reports 60% increase in contracted utilisation growth and higher capex guidance
• NextDC enters trading halt ahead of entitlement offer announcement
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates

As big data and smarter solutions gain momentum across businesses around the globe, some Australian biotech companies have great service offerings to benefit from the trends.  Here is one up and comer who's share price has been on a stellar run and is worth considering for your portfolio.

Pro Medicus Limited (ASX: PME) is a leading health imaging company that provides a full range of radiology IT software and services to hospitals, imaging centres and health care groups worldwide.

The Pro Medicus share price has started the year strongly, increasing by approximately 25% since the start of January 2019.  This increase in share price was largely driven by investor sentiment regarding the recently released results.

A strong revenue figure of $25.3 million (up 59.4%), along with a reported net after-tax profit of $9.1 million (up 184.3%) highlight that Pro Medicus continues to grow the top-line.  Along with this, the balance sheet looks very strong in general as cash reserves are solid at $24.7 million.

Even more impressive is that Pro Medicus is debt free and has announced a fully franked dividend of 3.5c per share, along with a special fully franked dividend of 2.5c per share.

Importantly, the strong result is reflected across all three major geographical regions with the CEO commenting that: Australia, USA and Europe were all progressing well.

A highlight of the half was that Pro Medicus achieved a key contract win when it announced a $27 million deal with Partners Healthcare in the USA for Massachusetts General Hospital and Brigham Women's hospitals.  This will help the company roll out its Visage technology and allow it to highlight itself in some of the best hospitals.

The current market capitalisation of Pro Medicus is only $1.5 billion so it is still a small-cap share but it has demonstrated explosive potential over the past decade.  EPS is expected to nearly double by 2021 and the company is expected to continue paying dividends.  It currently trades on a P/E ratio of 111.

Foolish Takeaway

Pro Medicus' technology not only takes images but helps doctors receive it much faster in any location.  It's helping make the world a smaller place and allows for quicker decision making in critical situations, which can save lives.

I believe that Pro Medicus is revolutionary and it's only a matter of time before more hospitals switch to this technology.  Visage can handle big files, and this will be essential when 5G is introduced.  Down the track, this may be able to evolve with AI and become even bigger.

In saying that, the company is still small and management's ability to scale big is going to be very important here.  Whilst there are some real positives on PME, at a P/E of 111 it might be worthwhile to wait for a pullback.

The post Why this ASX biotech company's share price is up 25% in 2019 appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 tech stock has Bell Potter just downgraded?
• 2 high-quality ASX stocks to buy and hold long term
• 3 ASX growth shares to buy with $10,000
• Down 38% this year, is it finally time to buy low on CSL, ResMed and Pro Medicus shares?
• One ASX share to double, one yielding 11% — ASX picks for April

Payment methods have evolved over time and smartphones have helped provide a platform for digital disruption in this space.

Companies like Afterpay Touch Group Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are starting to provide challenges to many established institutions as they look to penetrate the payments market.  Let's take a look at whether you should consider adding either of these companies to your portfolio.

Afterpay Touch Group

Afterpay Touch Group is a technology-driven payments company that offers a 'buy now, receive now, pay later' service that does not require end-customers to enter a traditional loan or pay any upfront fees or interest to Afterpay.

The Afterpay share price was $2.95 when it listed on the ASX in June 2017 and has increased by ~500% to sit just under $17.44 per share.  It started CY2019 at $12 per share and the impressive charge was on the back of positive investor sentiment heading into results season.

Expansion is a driving factor behind the share price rise, with investors well aware of the lucrative returns if Afterpay can successfully penetrate the US and UK retail markets.  Afterpay currently has 2.5 million subscribers and more than 20,000 retail partners and this is being interpreted as just scratching the surface.

Looking at some key financial metrics, Afterpay is not yet turning a profit but is expected to be generating 25.9c in earnings per share by FY2021.  The current Price to Sales ratio is at 35.6, in comparison to the sector average of 4.4.  Its debt to equity ratio is ~88%.

Zip Co Ltd

Similar to Afterpay, Zip Co Ltd offers point-of-sale credit and digital payment services to consumers and merchants.

The Zip Co share price was $0.65 when it listed on the ASX in December 2017 and has increased by ~110% at $1.28 per share.  It started CY2019 at $1.06 per share and it has also enjoyed a 20% increase to start the new calendar year.

12,600 retail partners are currently using Zip Co and it continues to grow, continuing to tie up some big-name businesses like Chemist Warehouse and Bunnings.  The CEO recently announced that the company was experiencing record growth across all key metrics including customer engagement, transactions, in-store volume, revenue and bad debts.

Looking closer at financial metrics, it currently has negative earnings per share but has a reasonable Price to Sales ratio of ~10.  The Debt/Equity ratio is ~868%.

Foolish Takeaway

It is clear to see the investors are highly optimistic about both of these digital payments companies.  Both are experiencing substantial growth and this can be seen in the share price, with a lot of that growth already factored in.

Afterpay is certainly getting more limelight than Zip Co and is slightly ahead in catching retailers and consumers.  The question remains at whether this is an easy concept to replicate and whether any NASDAQ giants try to get a piece of the pie on offer.

High debts and further regulation are risks the companies face but if you're willing to be patient then it might be worth-while to buy a small parcel in one of them.

The post Should you buy Afterpay Touch Group or Zip Co at current share prices? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• $10,000 invested in Zip shares one month ago is now worth…
• 3 ASX 200 stocks leaping higher in this week's slumping market
• Why Eden Innovation, Elsight, Paladin Energy, and Zip shares are racing higher today
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday

The ASX healthcare sector has provided stellar returns to investors over the past decade and there continues to be a range of high-quality companies worth considering for your portfolio.  I believe this ASX blue-chip healthcare share is worth considering:

CSL Limited (ASX: CSL)

CSL Limited is a global biotechnology manufacturer that researches, develops, and markets products to treat and prevent rare and serious diseases.

CSL has a broad range of products in its portfolio that generate revenue across different therapeutic groups.  There is good diversification in earnings through the different groups, which include: Immunoglobulins, Haemophilia, Albumin, and specialty products.

Along with this, CSL consistently has a pipeline of research and development projects to promote further growth down the track.  In its half-yearly results presentation, CSL alluded to five new products moving into the human trial phase which demonstrates the company's innovation.

The CSL share price has come down significantly off its 52-week high of $232 after slightly softer than expected results.  It currently has a P/E ratio of 32.5 which may look expensive, but this is due to investors continuing to expect a fast growth rate in earnings, which currently sits at a healthy $5 per share.

Total revenue was up 11% from the corresponding period in FY18 and NPAT grew by 10%.  Return on invested capital was slightly down at 29.9%.

The outlook for FY2019 indicates that CSL expects strong demand for its therapies to continue.  Seqirus demand is expected to be lower in this upcoming half due to seasonality, as the northern hemisphere has greater demand for this flu treatment and that part of the world is heading into warmer seasons.  Along with this, CSL expects FY2019 NPAT to be at the top end of the guidance range.

Foolish Takeaway

Investors can easily be caught up in trying to pick beaten down shares in low-quality companies, hoping for an inspirational comeback story.  CSL Limited is a star quality company which has shown time after time that it can create new products, launch them successfully, increase earnings and repeat the process.

I think the CSL share price will continue to succeed long into the future and would be comfortable to buy and hold at any time.  This recent announcement seems to have opened a window of opportunity for investors to buy in.

If you don't think CSL Limited is the healthcare company for you, I would consider researching Cochlear Limited (ASX: COH).

The post An ASX blue-chip healthcare share to buy and hold forever appeared first on The Motley Fool Australia.

More reading

• This ASX shares and ETF mix could be the key to early retirement
• 3 ASX 200 blue chip shares to buy with $20,000
• How to build a Warren Buffett-inspired ASX share portfolio
• How to build massive wealth with ASX shares
• Down 38% this year, is it finally time to buy low on CSL, ResMed and Pro Medicus shares?

Nearmap Ltd (ASX: NEA) has started 2019 with a bang, as the share price has risen by a stunning 60% to close Friday's trading at $2.39.  Let's take a closer look at why it has started the year in this bullish fashion.

Nearmap Limited is an ASX listed aerial imagery technology and location data company that provides frequently-updated, high-resolution aerial imagery of Australia, United States of America and New Zealand.

The Nearmap share price has really benefitted from positive preliminary results released in mid-January, which indicated that several important metrics were performing strongly.

The main growth metric is the annualised contract value (ACV) which reflects the revenue provided by paying customers on a full year basis.  This is up 42% year-on-year to $78.3M and has been largely driven by a 107% increase in the US component of the ACV, along with a very healthy 23% growth in the Australian component.

Similar to Afterpay Touch Group Ltd (ASX: APT), Nearmap's management has identified the massive opportunity that the US represents, and even small market penetration could result in sizeable earnings.  After the release of the preliminary report, the US ACV accounts for one-third of the total value.

The other main reason behind the Nearmap share price surge is due to the company reaffirming FY2019 guidance.  This includes: deploying $70M in capital raised to accelerate sales and marketing strategy in USA and expansion into Canada, looking to break even on cash flows and continue to strive for technological leadership in the field.

The company is yet to turn a profit but has done exceptionally well to continue growing the top line.  Looking at key ratios, it's current Price to Sales ratio is sitting at an expensive 18, compared to the sector's 1.4 while it's Price to book value is also sitting very high at 33.

Foolish Takeaway

There is no doubting that Nearmap Limited has the potential to continue churning out impressive growth numbers and should turn a profit in coming financial years.

At the current Nearmap share price, it's market capitalisation sits at ~$1B so it's still a very much a small cap.  It is possible that capital raisings may be required to help provide further expansion down the track.

Looking at the P/S ratio and P/B ratio, it is clear to see that investor optimism regarding the US expansion is already built in the current Nearmap share price.  Whilst it looks like it could be a star of the future, it may be worthwhile leaving it on the watchlist for now as it's already up 60% this calendar year.

The post Why the Nearmap share price is up 60% so far in 2019 appeared first on The Motley Fool Australia.

More reading

• This ASX shares and ETF mix could be the key to early retirement
• 3 under-the-radar ASX AI shares that could be the next WiseTech
• Worley flags $30–40m EBITA hit from Middle East conflict in FY26 outlook
• It's time Australia had a Sovereign Wealth Fund
• Viva Energy Group issues update on Geelong Refinery after fire

When analysing how your investment portfolio is constructed, it is always prudent to consider having a small percentage in companies that perform well in a bear market.  Gold mining companies typically outperform in this type of market.

Here are two ASX gold mining shares that I'd consider adding to your portfolio…

Newcrest Mining Limited (ASX: NCM)

Newcrest Mining Limited is the largest gold producer listed on the Australian Stock Exchange and one of the largest gold producers in the world.

The Newcrest share price has softened slightly since its results announcement on Thursday, with investors expecting a little bit more.  Underlying profit was up 104% to A$237 million on the back of strong gold production, while net debt reduced by 8%.

Newcrest's strategy is to continue growing through expanding its current mines and look for opportunity via mergers or acquisitions.  Along with this, there is a large focus on continued exploration and partnerships with explorers for new discoveries.

The Newcrest Mining share price is currently trading near its 52-week high on a P/E ratio of 29.

Northern Star Resources Ltd (ASX: NST)

Northern Star Resources Limited is another global-scale Australian gold producer with Tier-1 world-class projects located in Australia and North America.

The Northern Star share price has continued a stellar run after releasing positive results on Wednesday, with revenue up 43% from the previous corresponding period and underlying net profit after tax up 11%.  The result is even more impressive due to the record investment of A$83 million spent on exploration and expansionary capital, including A$10 million spent on the Pogo investment.

The strength of Northern Star's balance sheet allows for countercyclical acquisitions and sector-leading returns.  This is not a common luxury for many mining shares, which can be crippled during market downturns in commodity prices.

The Northern Star Resources share price currently is trading right near its 52-week high on a P/E ratio of 23.

Foolish Takeaway

Whilst mining companies come with their own inherent risks, Newcrest and Northern Star represent good options as a small hedge in your portfolio.  Both companies are trading near their 52-week highs so I'd consider waiting for a dip before buying in.

The post 2 ASX gold mining shares to consider adding to your portfolio appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Dateline Resourcs, Northern Star, Rox Resources, and Wesfarmers shares are dropping today
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Leading brokers name 3 ASX shares to buy today

If the start of 2019 is anything to go by, these three ASX listed companies could be in for a massive year…

Appen Ltd (ASX: APX)

Appen is a global leader in the development of high-quality, human-annotated training data for machine learning and artificial intelligence.

The company is enjoying being a part of the Artificial Intelligence and big data boom, as more and more companies are looking to find smarter solutions in how they do business.  This trend is helping to present the company with many opportunities to grow earnings.

Investors look to be expecting good results from the half-yearly announcement, as the Appen share price has rallied 39% since the start of January.  The P/E ratio is currently at 50.

Magellan Financial Group Ltd (ASX: MFG)

Magellan Financial Group is a funds management business based in Sydney who offers international investment funds to high net worth and retail investors in Australia, New Zealand and institutional investors globally.

Investors were extremely pleased with Magellan's latest announcement, with Funds under management up 35% to $72 billion and adjusted net profit after tax up to an impressive 62% to $176 million.  The company's interim dividend is also up 66% to $0.73 per share.

The Magellan share price is up 37% since the start of January and the P/E ratio is 17.

Nearmap Ltd (ASX: NEA)

Nearmap is an Australian aerial imagery technology and location data company that provides frequently-updated, high-resolution aerial imagery of Australia, United States of America and New Zealand.

The company has pushed higher since preliminary results released in mid-January, with the company's main financial metric of annualised contract value up 42% year on year.  Along with this, the company has reaffirmed guidance and expects to have cash flows break even in the next period.

The Nearmap share price is up 60% since the start of January.

Foolish Takeaway

All three of these ASX shares have seen significant price growth in 2019 already.  They could all be potential long-term buy and hold options, but you'll have to pay a premium to get in currently, with all three sitting near their 52-week highs.

It might be worthwhile just keeping them in the watchlist for now.

The post These 3 ASX shares are up more than 30% already in 2019 appeared first on The Motley Fool Australia.

More reading

• 3 under-the-radar ASX AI shares that could be the next WiseTech
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• ASX 200 shares rip with financials leading a remarkable recovery last week
• Why is the Magellan share price rising today?
• Why Magellan, Telix and Fortescue shares are grabbing headlines on Friday

As you approach retirement age, you need to be comfortable with the risk profile of companies you hold. It is important to consider transitioning out of some riskier high growth shares into some high dividend paying shares.

I would consider adding the following high-yield ASX shares to my retirement portfolio:

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is one of the world's largest medical diagnostics companies, providing laboratory and diagnostic imaging services to medical practitioners, hospitals, community health services, and their collective patients.

The company's share price has remained in a consistent band for a long period of time and its dividend yield is currently at 3.5%.

Sonic provides a number of services to its clients that will still be required in the future and as a relatively big player in the field, I expect its earnings per share of $1.15 to continue to grow.

Challenger Ltd (ASX: CGF)

Challenger is an investment management company that provides a range of product solutions aimed at helping customers during their retirement. These solutions are based around our market-leading annuities that provide regular payments for the chosen investment term, regardless of how markets perform.

Challenger's share price has come down substantially off its 52-week high of $13.45 but it currently has a dividend yield of 4.4%.

Looking at Australia's age demographic, this leader in retirement-based solutions will be boosted by structural tailwinds as the "baby-boomer" generation call time on their careers.

Commonwealth Bank of Australia (ASX: CBA)

Commonwealth Bank of Australia is a multinational business that provides a range of financial services along with retail banking.

The company's earnings per share of $5.69 paves the way for a fantastic dividend yield of 5.8% currently.

With the dust from the Royal Commission starting to settle, it could be a good time to add CBA to your portfolio while it still trades below its 52-week high.

Foolish Takeaway

Whilst each of these companies faces their own individual risks, you can expect them to be around well into the future.  Along with this, I'm confident that they will continue to provide high dividend yields and hopefully provide some peace of mind in retirement.

The post 3 high yield ASX dividend shares to consider for your retirement appeared first on The Motley Fool Australia.

More reading

• This ASX shares and ETF mix could be the key to early retirement
• 5 reasons to invest $500 in CBA shares
• If I invest $10,000 in BHP shares, how much passive income will I receive in 2027?
• 3 cheap ASX dividend shares offering 5% to 6% yields (and major upside)
• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?

The media continue to report on the declining property market but, despite that, the REA Group Limited (ASX: REA) share price has rallied 4.5% on Tuesday.

Is it time to add REA Group shares to your portfolio?

The REA Group share price has taken a battering in FY2019, due to a storm of pessimistic media regarding the Australian property market.  It is currently trading ~19% below its 52-week high of $94.12 on a P/E of 31.

When looking at the bull case for REA Group, the online advertising company is currently the dominant player in the Australian market.  It has the largest and most engaged audience, with monthly user traffic across all platforms 2.8x greater than its competitors.  Along with this, the average time users spend on the REA app is 5x greater than time spent on others.

Having a large captured audience allows REA Group to slowly expand pricing margins to agents listing REA properties, as consumers are more likely to use this platform than another.  This is partly why the company are confident in citing that "Revenue growth is expected to exceed the rate of cost growth for both the second half and full year".

Looking at financials, earnings per share are currently at $2.10 and are expected to grow to $3 by FY2020.  Along with this, dividends per share should increase relatively.

When looking at the bear case for REA Group, it is well documented that the company faces a challenging short term due to the declining property market.  The specific issue is that listings are expected to be lower than previous periods, particularly in Sydney and Melbourne.

Due to the love affair that Australians have with the property market, the negative rhetoric from the media regarding prices has now flowed through to the common chit chat around family barbeques and conversations amongst friends. All the talk has been about the declining conditions and it will now take time for any future good news to flow through.

Along with the effect that property price news has on the company, the continued microscope on mortgage lending may provide further headwinds to the share price.

Foolish Takeaway

Whilst REA Group could reflect a great buy and hold opportunity, current property market dynamics present a rocky short-term outlook.  It seems to find support around $70 per share, where technical analysts begin to think it's cheap and buy up.

Once the public start to become a bit more positive towards the housing market, I'd start considering a purchase but for now, I'd suggest a hold.

The post Why the REA Group share price is on my hold list appeared first on The Motley Fool Australia.

More reading

• How to build a Warren Buffett-inspired ASX share portfolio
• How to build massive wealth with ASX shares
• If I had $5,000 to invest in ASX 200 shares today, here's what I'd buy
• Buy and forget? 2 top ASX shares built for the long term
• 2 ASX growth shares to buy now while they're on sale

Despite technology shares getting hit hard in the pre-Christmas market rout, the start of a new year has indicated to investors that this sector is still one to watch in 2019.

Here are three explosive growth technology shares that may be worth looking at:

XERO Limited (ASX: XRO)

Xero is a New Zealand based software company that offers a cloud-based accounting software platform for small and medium-sized businesses.

The Xero share price has increased ~11% since the start of January to $46.84 (at the time of writing).  Xero continues to focus on growing subscriber numbers for its small business platform, currently at 1.6 million users.  The company is not expected to turn a profit until FY2020 but the large subscription base should allow it to start increasing pricing margins, with not many consumers likely to consider changing accounting software regularly.

Afterpay Touch Group Ltd (ASX: APT)

Afterpay Touch Group is a technology-driven payments company with a 'buy now, receive now, pay later' service that does not require end-customers to enter into a traditional loan or pay any upfront fees or interest.

The Afterpay share price has increased ~42% since the start of January to $17.70 (at the time of writing) but is still below its all-time high of $23.  Whilst current earnings do not reflect the current share price, if the company successfully expands into the United States then it could be a star of the future.

Altium Limited (ASX: ALU)

Altium Limited is a software company that provides PC-based electronics design software for engineers who design printed circuit boards.

The rise of smart connected devices or "Internet of things" has seen the demand for printed circuit boards increase substantially over the past few years.  This is a trend that is set to continue and Altium's management has indicated that the company expects to be "market-dominant" by 2020.  This rhetoric is backed by significant upside in EPS forecasts moving forward but it currently trades at an expensive P/E of 56.

The Altium share price has increased ~23% since the start of January to $26. 78 (at the time of writing).

Foolish Takeaway

Whilst these 3 ASX tech companies have fantastic growth runways, they may be considered high-risk options.  Considering the sky-high P/E ratios, partly due to the recent bullish cycle, it may be wise to wait for a pullback before dipping in.

The post 3 ASX tech growth shares to watch in 2019 appeared first on The Motley Fool Australia.

More reading

• 3 under-the-radar ASX AI shares that could be the next WiseTech
• 2 ASX ETFs that could be a perfect for a tech rally
• How to build a $500,000 ASX share portfolio step by step
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• The tech rally is back: here are 5 ASX shares leading the charge

The Nanosonics Ltd. (ASX: NAN) share price is currently trading at $3.50, down 0.14% for the session, and still well below its 52-week high of $3.86 despite continuing to rally with global markets since the pre-Christmas plunge.

Nanosonics is an ASX200 listed healthcare company that specialises in the development and commercialisation of infection control solutions.  It has a global footprint and is approved for sale across most major markets.

Its global installed base of Trophon devices grew to 17.7k in FY2018 with continued growth expected in FY2019.  The total opportunity for installed bases is currently estimated to be 120k, meaning only 15% of the total market has been penetrated.

Along with the growth in installed bases, Nanosonics is also beginning to benefit from a second revenue stream as customers begin to replace Trophon units that are more than 5 years old.  This additional area of work is set to grow substantially over the next three financial years, as a large proportion of customers currently have devices that are three to five years old.

Looking further ahead, continued changes in guidelines regarding disinfection control of semi-critical probes will provide positive tailwinds to sales growth.  The re-negotiation of a major agreement with General Electric Company (NYSE: GE) at the start of FY2020 is also set to result in a material increase in margins.

Whilst there is a clear growth runway for Nanosonics' Trophon devices, some financial measures were softer than anticipated in the FY2018 results.  Sales Revenue was $7M lower than FY17, with Distributors running down inventories due to the pending launch of the Trophon2 device.  Operating expenses were also up in FY2018, largely due to increasing the number of employees to support product expansion. Despite the softer results, the cash position is very healthy at ~$69M and will support further expansion.

Nanosonics is due to report its first-half FY19 earnings on February 25.

So, is the Nanosonics share price a buy?

With earnings per share expected to grow three-fold by 2020, Nanosonics could represent a fantastic buy and hold option for your portfolio.  It has a product that is difficult to replicate and is supported by regulation along with sticky earnings, where a customer is unlikely to quickly change provider once using the Trophon device.  This could lead to the ability to increase margins via price once the company is happy with their market share position.

Looking at its ratios, Nanosonics is currently trading at an astronomical P/E of 183, almost ten times the sector average so its valuation currently looks stretched.  I think it's worthwhile to wait for a pullback and will just keep it in the watchlist for now.

Other ASX healthcare growth shares that may be worth looking into which could be more reasonably valued are ResMed Inc (ASX: RMD) and Pro Medicus Limited (ASX: PME).

The post Is the Nanosonics share price a buy? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares